Economy ———-
Economic overview: Australia has a prosperous Western-style capitalist economy, with a per capita GDP comparable to levels in highly industrialized West European countries. Rich in natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels. Commodities account for more than 80% of the value of total exports, so that, as in 1983-84, a downturn in world commodity prices can have a big impact on the economy. The government is pushing for increased exports of manufactured goods, but competition in international markets continues to be severe. Australia has suffered from the low growth and high unemployment characterizing the OECD countries in the early 1990s. In 1992-93 the economy recovered slowly from the prolonged recession of 1990-91, a major restraining factor being weak world demand for Australia's exports. Growth picked up so strongly in 1994 that the government felt the need for fiscal and monetary tightening by yearend. Australia's GDP grew 6.4% in 1994, largely due to increases in industrial output and business investment. A severe drought in 1994 reduced the value of Australia's net farm production, but rising world commodity prices are likely to boost commodity exports by 15% to $42.4 billion in 1995/96, according to government statistics. Short-term economic problems include a balancing of output growth and inflationary pressures and the stimulation of exports to offset rising imports.
GDP: purchasing power parity - $405.4 billion (1995 est.)
GDP real growth rate: 3.3% (1995 est.)
GDP per capita: $22,100 (1995 est.)
GDP composition by sector: agriculture: 3.1% industry: 27.7% services: 69.2% (1994)
Inflation rate (consumer prices): 4.75% (1995)
Labor force: 8.63 million (September 1991) by occupation: finance and services 33.8%, public and community services 22.3%, wholesale and retail trade 20.1%, manufacturing and industry 16.2%, agriculture 6.1% (1987)
Unemployment rate: 8.1% (December 1995)
Budget:
revenues: $95.69 billion
expenditures: $95.15 billion, including capital expenditures of $NA
(FY95/96 est.)